It is a fact that the economy of Singapore has grown by leaps and bounds over the last few years. This has been achieved due to the economic policies followed by the government of Singapore who have made the overall development of the economy as the top of their agenda.
This has opened many opportunities for a lot of people, and a lot of businesses and one of those is Forex trading. Forex trading in Singapore, as is the case in most of the world, is a growing business which has been helped further in its growth by the development of associated industries like Forex training, financial investment, tourism etc. Apart from what meets the eye like trading, Forex in Singapore also impacts other businesses like tourism, export, import etc.
Due to the wide-ranging implications of the currency value, more and more people in Singapore are becoming aware of Forex, both as a means of investment and also as a means of growing and sustaining their other businesses.
For example, those who are engaged in export or import, though they don’t directly involve themselves with Forex trading, need to keep abreast of the value of the Singapore dollar and also the factors that affect its value so that they can judge the overall impact of the currency fluctuations in their business.
In such cases, it is quite likely that such businesses approach Singapore traders or other Forex businesses to seek advice on how they can manage their margins amid large fluctuations in the value of the Singapore dollar.
Such people who are involved in export/import are generally advised to go in for hedging to neutralize their Forex risk. Hedging in Singapore Forex means that the person or the business takes a position in a pair (which directly affects his company) that is in opposition to his exposed risk.
This will basically act as a hedge or a counter-risk to his original risk and thus the net of both the positions would mean that he does not have any risk at all due to the fluctuations in currency value.
The same situation can arise in the case of tourism and travel when money comes in or goes out of Singapore. In both cases, the person involved can make or lose a lot of money if he manages to balance his risk very well.
As it is clear, with the growth of the economy, the Singapore trader has a load of opportunities for him to make use of. The opportunities are restricted not only to the field of forex trading but can also be extended to fields like brokerages, export, import, tourism, travel, hedging etc. It all depends on the capability of the individual to ensure that he makes proper use of the available opportunities.